Choctaw Allotment Owners Challenge Oil & Gas Leasing Practices Under 1947 Stigler Act
With legal assistance from mctlaw, the Native American owners of an Indian allotment on the Choctaw Reservation in eastern Oklahoma have sued the federal government, claiming breach of trust and unconstitutional taking of the allotment’s natural gas resources. These claims stem from how federal officials have managed oil & gas interests owned by individual Indians across eastern Oklahoma under the 1947 Stigler Act, which applies to the Choctaw, Cherokee, Chickasaw, Muscogee (Creek), and Seminole Nations of Oklahoma.
Historical Background
During the 1800s, many members of the “Five Civilized Tribes” were removed from their homes in the southeastern United States and given reservations in what would become eastern Oklahoma. In the late 1800s and early 1900s, these reservations were divided into individual parcels called allotments, typically between 40 and 160 acres, patented to individual tribal members with certain federal protections, including the need for federal approval before selling or leasing.
Noel Pope’s Allotment and the Stigler Act
In 1903, Noel Pope, a full-blood Choctaw, received an 80-acre allotment. Around 1930, it was discovered that the allotment contained natural gas reserves, and since then, oil & gas companies have operated on the allotment under leases with the Indian landowners. In 1947, the responsibility for approving oil & gas leases with members of the Five Tribes shifted. The Stigler Act required that allotment leases in eastern Oklahoma be approved by state-court judges in the counties where the allotments are located, with a federal official present to represent the Indian landowner.
Inheritance Issues and Lease Disputes
After Noel Pope passed away in 1954, his undivided mineral rights were inherited by a large group of his living grandchildren and some great-grandchildren. In 2022, these heirs were approached by a lawyer representing an oil & gas company who filed a petition in district court on their behalf without their consent, while also representing the proposed lessee. A federal attorney from the Department of the Interior later joined the case but failed to object to the industry lawyer’s conduct. The attorney informed the landowners of a $500 per acre bonus payment offer, which later dropped to $200 per acre when it was time to sign.
Court Proceedings and Compensation Issues
A majority of the heirs—64 of the 84 Indian owners—refused to sign the lease, but the court proceedings continued with U.S. trial attorney support. The judge approved the lease without addressing the rights of those who did not consent and directed payments only to those who had signed. Consequently, those who refused the lease received no compensation for their share of the natural gas, and even those who signed have not received any royalty payments.
Statement from mctlaw Attorney
Jeffrey Nelson, one of the attorneys for the Indian landowners, stated, “We don’t think these practices are isolated incidents. There are 40 counties in what are now 16 judicial districts in eastern Oklahoma that have been approving Indian oil & gas leases for over 100 years, possibly cheating many thousands of Indian landowners out of their fair share. It’s time to shine a light on these practices.”
Case Information: The case is Heirs of Noel Pope v. United States, No. 24-1873 L (Fed. Cl. Nov. 14, 2024). Mctlaw is a national litigation firm with a dedicated Indian law practice. Questions may be directed to Jeffrey Nelson, manager of the Indian law group, at (888) 952-5242 or [email protected].
